First home buyers access more from super
The Government announced an increase to the maximum amount that can be released under the First Home Super Saver Scheme from $30,000 to $50,000. This change will further help first home buyers save for a house deposit in a tax effective way, via additional voluntary super contributions.
The First Home Super Saver scheme was introduced in the 2017-18 Federal Budget and was designed to help younger Australians use their super account to help save for their first home.
Eligible first home buyers can potentially increase their house deposit savings through tax effective super contributions. When eligible members are ready to purchase their first home, the scheme allows them to apply to have the voluntary contributions released, plus any earnings on the money.
Previously, the total amount someone could access was $30,000, however last night the Government announced that this amount would be increased to $50,000.
This brings the total tax benefit of contributing to the scheme $7,500, up from the previously available $4,500. However, the annual limit on eligible contributions of $15,000 will also mean that people will need to start making contributions earlier to take full advantage of this potential.
For more information on the First Home Super Saver, visit the ATO website.
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12 May 2021
Learn more about the 2021 Federal Budget
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